Bailout Blues

This early in the day, nobody knows whether the nation's financial markets will rebound from the week's earlier losses. One thing is for sure. Fingers will continue to be pointed and blame assessed. Coming as it has in the middle of a presidential race, both candidates will burn the midnight oil trying to convince the public they have the answer. So why does it feel like most of what people are talking about is so short term?

The most dangerous thing that could result from the current crisis is a quick fix solution. Get it off the front page, and all those involved know it recedes from the public consciousness. One person in the eye of the storm is Massachusetts Congressman Barney Frank. He's center stage in all this as chair of the House Financial Services Committee. He's blunt and to the point when he says the nation can't afford to use the Fed to bail out large struggling institutions forever.

And make no mistake, the titans of high finance aren't the only ones looking to Uncle Sam for help. The auto industry is seeking $25 billion dollars in either loans or loan guarantees. With Michigan a battleground state in the upcoming election, how the government answers will have wide implications. Will other troubled suitors, many of whom detest regulation, have to come to that great regulator, the federal government?

Barney Frank's approach is to deal with the problem on several fronts. He told Politico.com the government should pressure financial institutions to ease up on foreclosures. He also said central bankers in allied nations ought to be doing more as well. His committee will be holding a hearing on the mess next Wednesday. No matter what happens in the markets between now and then, that hearing is important if not crucial to the future of the country.

Barney Frank seems to know the right questions, even if he doesn't have all the answers. But does anyone?